Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow improved substantially from the prior quarter but weakened compared with the same quarter a year earlier. Revenue increased relative to both periods, while operating cash flow rose sequentially yet fell year over year.
- Operating cash flow outpaced revenue growth sequentially, resulting in a higher free cash flow margin. Compared with the year-ago quarter, operating cash flow was lower relative to revenue, leading to a reduced free cash flow margin.
- All cash flow metrics—operating cash flow, capital expenditure, free cash flow, and margin—improved versus the preceding quarter. Versus the same quarter last year, revenue was higher but operating and free cash flow were lower, and capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.0B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
7.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-09-30 | $40.5B | $6.6B | $2.6B | $4.0B | 9.9% |
| 2023-12-31 | $39.3B | $3.7B | $3.7B | -$49.0M | -0.1% |
| 2024-03-31 | $39.2B | $3.2B | $2.8B | $369.0M | 0.9% |
| 2024-06-30 | $44.1B | $6.0B | $2.6B | $3.4B | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow improvement vs. prior quarter, but year-over-year decline
Operating cash flow rose markedly from the previous quarter, driving a significant increase in free cash flow. However, compared with the same quarter last year, operating cash flow was lower, indicating a potential weakening in cash conversion efficiency.
If operating cash flow continues to lag revenue growth, free cash flow margins may remain under pressure relative to historical levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow outpaced revenue growth sequentially, resulting in a higher free cash flow margin. Compared with the year-ago quarter, operating cash flow was lower relative to revenue, leading to a reduced free cash flow margin.
All cash flow metrics—operating cash flow, capital expenditure, free cash flow, and margin—improved versus the preceding quarter. Versus the same quarter last year, revenue was higher but operating and free cash flow were lower, and capital expenditure was slightly higher.
Monitor the trajectory of operating cash flow, which declined year over year despite higher revenue, as it directly affects free cash flow generation.